When I browse items I can then open the imageviewer and see them. But when I do a simple search and open a resulting object the image does NOT display. I get a red line where the image should be. What's up with that?

This is due to an update to your JAVA jre.

Looks like a problem with the newest JAVA 1.7.0_07 (b11) in the 32bit version only. We have downloaded the 32bit, the 64bit and the Java Development kit (jdk) The 32bit version of (build 1.7.0_07-b11) is missing the JPEG decoder/encoder so when you go to overlay the color highlights on the page the program will fail

The Cure would be to first uninstall your ResCarta tools 3.1.0, Uninstall your 32bit java. Use the 64bit IE browser and go to JAVA.COM and let the installer install a new 64bit version of Java then reinstall your ResCarta Tools 3.1.0.